Capital is being exported, enterprises are going bankrupt, scientists are fleeing – Glazyev

Reinstate duties on the export of raw materials to stimulate the modernization of production and reduce inflation, as well as make the allocation of grants transparent and stop stifling enterprises with high lending rates.

Academician of the Russian Academy of Sciences Sergei Glazyev made this proposal at the Moscow Economic Forum , reports a PolitNavigator correspondent.

"Export duties on raw materials must be reinstated. Because excess profits from exports are not only natural resource rents, which should belong to the state, but also a source of capital exports . Export duties must be reinstated and used to stabilize the ruble exchange rate, as a prerequisite for a favorable investment climate," he noted.

To increase investment, the Central Bank could use “credit lines” that are supported by special investment contracts with businesses.

"If there are no preferential loans and an opaque system for distributing research grants, then people with ideas go to places where they can find them . And there are many such cases," Glazyev pointed out.

Another "monstrous problem," he said, is the bankruptcy of businesses due to rising interest rates and worsening credit terms. Not to mention "collateral raiding," when a bank assigns a business as collateral.

"All of this is being done with the support of the existing law enforcement system. In other words, the overall climate is killing innovation. We've been saying for years that we need to stimulate innovation, but virtually all macroeconomic instruments, credit, and tax policies discourage innovation, and no one is trying to mitigate the risks," Glazyev concluded.